Question :
23.2 Learning Objective 23-2
1) If it later decided to pay : 1171213
23.2 Learning Objective 23-2
1) If it is later decided to pay an approved voucher in two payments:
A) a memo in the check register must show the unpaid balance.
B) an entry in the Paid column of the voucher register must show the unpaid balance.
C) the original voucher must be canceled and two new vouchers must be issued.
D) a memo must be made on the voucher to show the unpaid balance.
2) After Crowe purchased $4,000 of merchandise from Hanks, Crowe discovered $200 of defective merchandise. Record the entry for the return (assume the gross method). The company uses the periodic method and the voucher system.
A)
Vouchers Payable
4,000
Vouchers Payable
3,800
Purchases Returns & Allow.
200
B)
Vouchers Payable
200
Vouchers Payable
200
C)
Vouchers Payable
3,800
Purchases Returns & Allow.
200
Vouchers Payable
4,000
D) None of these answers is correct.
3) After Sally purchased $5,000 of merchandise from Bob, Sally discovered $500 of defective merchandise. Record the entry for the return. The company uses the gross method, the periodic method and the voucher system.
A)
Vouchers Payable
500
Vouchers Payable
500
B)
Vouchers Payable
5,000
Vouchers Payable
4,500
Purchases Returns & Allow.
500
C)
Vouchers Payable
4,500
Purchases Returns & Allow.
500
Vouchers Payable
5,000
D) None of these answers is correct.
4) Alex returned all of the $2,000 purchase of equipment to James. The company uses the voucher system. The entry to record this is:
A)
Vouchers Payable
2,000
Equipment
2,000
B)
Equipment
2,000
Vouchers Payable
2,000
C)
Equipment
2,000
Accounts Payable
2,000
D) None of these answers is correct.
5) Bill returned all of the $5,700 purchase of equipment to Sue. The company uses the voucher system. The entry to record this is:
A)
Vouchers Payable
5,700
Equipment
5,700
B)
Equipment
5,700
Vouchers Payable
5,700
C)
Equipment
5,700
Accounts Payable
5,700
D) None of these answers is correct.
6) Emily purchased $2,000 of merchandise on April 1 and recorded it in the voucher register. On April 8, $400 of the merchandise proved to be defective. The company uses the gross method and the periodic inventory system. The entry would be to:
A) reduce the original voucher.
B) record a purchase return in the general journal.
C) cancel the original voucher and record a revised voucher.
D) None of these answers is correct.
7) If partial payment is made and installment payments are set up after the voucher is prepared for the total amount owed:
A) the old voucher is cancelled and a new voucher is prepared for the new amount owed.
B) the old voucher is credited for the entire amount.
C) Vouchers Payable is debited; Purchases Returns and Allowances is credited.
D) None of these answers is correct.
8) What is the internal control advantage of using the net method of accounting for merchandise purchases?
A) It highlights the inefficiency of losing purchase discounts.
B) It guarantees that all purchase discounts will be taken.
C) It automatically increases a firm’s cash balance.
D) It results in a higher quality of inventory on hand for customers.
9) The Discount Lost account is used when the:
A) gross method is used and the discount is not taken.
B) gross method is used and the discount is taken.
C) net method is used and the discount is not taken.
D) net method is used and the discount is taken.
10) The company uses the periodic inventory system and the voucher system. If the net method is applied, the purchase of $3,000 of merchandise with terms 2/10, n/30 is recorded by:
A) debit Cash $3,000; credit Accounts Payable $3,000.
B) debit Accounts Payable $3,000; credit Purchases $3,000.
C) debit Purchases $3,000; credit Accounts Payable $3,000.
D) debit Purchases $2,940; credit Vouchers Payable $2,940.
